IMPORTANT DISCLOSURE INFORMATION
The following presentation by New England Capital Financial Advisors, LLC (“NECFA”) is intended for general information purposes only. No portion of the presentation serves as the receipt of, or as a substitute for, personalized investment advice from NECFA or any other investment professional of your choosing. Please see additional important disclosure at the end of this penetration. A copy of NECFA’s current written disclosure Brochure discussing our advisory services and fees is available upon request or at www.newenglandcapital.com.
Portfolio Holding Highlight: GS GQG Partners International Opportunities Fund
In the coming months, I will be highlighting some mutual funds in our models and why we chose them. We have a Research/Investment team, which is composed of our advisory team and our compliance officer. This team meets at least quarterly or as needed, depending on market conditions. During meetings, the team reviews funds in our models, the funds’ performances, the economic environment, and discusses funds on our watch list and strategies going forward. While we don’t analyze your individual account on a daily basis, we closely watch the mutual funds and ETF’s that are in the portfolio’s. When evaluating existing or new funds, we use our 4 step process or the 4 p’s, People, Process, performance, and Price.
Today I’d like to highlight the Goldman Sachs International Opportunities Fund located in many of your accounts as an international allocation. The strategy of this investment is long term capital appreciation, it invests primarily in equity investments in non – US companies.
First, we’ll look at the “People” or Portfolio Managers. How long have they been managing the fund or have there been any manager changes? In this Goldman Sachs fund, the lead manager Rajiv Jain has been with the fund since its inception back in December 2016 and also has more than two decades of experience running international strategies. Two deputy managers were recently added as well as a team of about 20 analysts and managers with diverse backgrounds; some examples are forensic accountants and former investigative journalists.
Next we look at the process. What is the portfolio managers process, and does it align with our philosophy? Jain’s focus here is on forward looking quality and to remain open minded in finding opportunities to compound capital around the world. He wants reliably growing companies if they are on solid financial footing and have demonstrated the ability to weather slow economies.
Next, we look at the performance. Since the Goldman Sachs fund’s inception, it has averaged about 11% per year. Last year the fund was only down a little over 11% whereas the International Index itself was down over 20%. You may have seen some purchases into this fund back in May as we added a small percentage back into the fund because we feel that international companies may do better with a declining US dollar.
We also look at the cost of the fund. The cost of the Goldman Sachs fund is .80% compared to the category average of a little over 1%. We try to keep costs low where we can. If there is a higher cost fund chosen it is because there is a high conviction of having that as part of your portfolio.
Along with our investment process above we also participate in conference calls, in-person meetings and webinars with representatives, portfolio managers and economists from the mutual funds companies we work with.
Stay tuned for my next mutual fund highlight. Have a great weekend.
Sources: Morningstar
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance is no guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by New England Capital Financial Advisors, LLC [“NECFA”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from NECFA. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. NECFA is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the NECFA’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.newenglandcapital.com. Please Note: NECFA does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to NECFA’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please Remember: If you are a NECFA client, please contact NECFA, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.